PT Vale Indonesia Tbk

PT Vale reported full-year 2025 nickel matte production of 72,027 metric tons, versus 71.3 in 2024. Quarterly Q4 2025 output was about 17,000 metric tons, around 12% below Q3 2025, as furnace rebuild work began in November 2025 and is targeted for completion by May 2026. Management said ore sales reached 2.3 million tons, about 60% above budget, with full-year unit cash cost of sales at 9,339, EBITDA of 228 million, and net profit of 76 million. Looking ahead, management said cash costs will likely be a bit higher in 2026 due to the rebuild, though they believe the level around 10,000 remains manageable; they also said the company has a USD 500 million sustainability-linked loan facility with a USD 250 million green shoe option to support upcoming CapEx.

The CEO framed 2025 as a year of resilience, discipline, and execution despite a difficult market and operational disruptions such as the oil pipeline leakage. He highlighted that the business is becoming more diversified and future-ready through saprolite sales, growth projects in Pomalaa and Bahodopi, and ongoing ESG progress including IRMA certification work. For 2026, he stressed a clear focus on growth, disciplined investment, and unlocking profitability through cost management, energy efficiency, and less dependence on imported commodities.

The CFO said 2025 was challenging on both operations and costs, including the impact of B40 and weaker nickel pricing versus 2024, but the company still improved production, revenue, and profitability. He cited unit cash cost of sales of 9,339, EBITDA of 228 million, net profit of 76 million, and a year-end cash position that gives the company room to fund growth. He also pointed to the USD 500 million sustainability-linked loan facility, plus a USD 250 million green shoe, as financing visibility for the next three years of CapEx.

Analysts focused on 2026 cash cost, contractor pricing pressure, RKAB revision timing, ore-mix flexibility between saprolite and limonite, and whether Pomalaa’s HPAL ramp and mechanical completion targets are achievable. Management said cash costs may rise somewhat because of the furnace rebuild, but they think a level around 10,000 is manageable, supported by hydro power, inventory buffers, and ongoing efficiency initiatives. They also said most saprolite volumes outside Sorowako are already contracted, Pomalaa’s first mechanical completion is targeted for Q3 2026 with full buildout by early 2027, and the company is actively engaging government on possible earlier RKAB revision windows while keeping flexibility in mining plans within feasibility-study and approval constraints.